Home Sizes Shrink with Growing Concerns Over the Economy and Energy Costs
Craig DiLouie, Editor
Posted June 23, 2008
As housing market woes deepen, inflation affects the overall economy and utility costs continue to escalate, the size of the typical U.S. home is declining. To address the needs of an aging population, there is an emphasis on greater accessibility throughout the home. To add value and improve their properties, homeowners are also investing in more outdoor living options with a trend toward low-maintenance landscaping. Additionally, residential architects report depressed business conditions, albeit with healthier conditions for remodeling and renovation projects. These findings from the American Institute of Architects (AIA) Home Design Trends Survey focus specifically on overall home layout and use in the first quarter of 2008.
The AIA Home Design Trend Survey is conducted quarterly with a panel of 500 architecture firms that concentrate their practice in the residential sector. Residential architects are design leaders in shaping how homes function, look, and integrate into communities and this survey helps to identify emerging trends in the housing marketplace. Business conditions are also monitored on a quarterly basis.
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“The recent weakness in the housing market forces households to be more sensitive to housing affordability concerns. Coupled with rising home energy costs, this encourages many to rethink their overall space needs,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While smaller homes may be a short-term response to economic conditions, there are signs that we may be at the beginning of a longer cycle where house sizes stabilize or even decline.”
Overall home layout and size highlights
| Residential elements (% of respondents that reported increases) | 2008 | 2007 |
| • Greater accessibility | 67% | 74% |
| • Informal space | 61% | 63% |
| • Access in / out of home | 59% | n/a |
| • Open space layout | 53% | 51% |
| • Finished basement / attic | 46% | 46% |
| • Single-floor plan | 40% | 43% |
| • Volume | 28% | 31% |
| • Square footage | 16% | 21% |
| • Lot size | 7% | 7% |
“Outdoor living elements continue to be extremely popular and include traditional features such as decks, porches and patios, with the addition of outdoor “rooms” and cooking areas as a more recent trend,” added Baker. “Lately, data shows a preference towards extending the home through blended indoor / outdoor space.”
“There is still some interest in upscale landscaping elements, but there is also growing demand for low-maintenance landscaping options due to water conservation issues.”
| Outdoor living and landscaping highlights | 2008 | 2007 |
| • Low maintenance landscaping | 70% | n/a |
| • Outdoor living space | 67% | 63% |
| • Blended indoor / outdoor living | 55% | 54% |
| • Upscale landscaping | 42% | 51% |
| • Exterior / security lighting | 39% | n/a |
Housing market business conditions
AIA Home Design Survey Index for Q1 2008 (any score above 50 is positive)
• Billings: 39
• Inquiries for new projects: 42
Baker continued, “With weak billings, inquiries for new projects and project backlogs, evidence suggests that the conditions in the residential market are not poised to improve anytime soon.”
Specific residential segments (index score computed as % of respondents reporting improving minus % weakening conditions)
• Additions / alterations: 31
• Kitchen and bath remodeling: 25
• Custom / luxury home market: -21
• Townhouse / condo market: -34
• Second / vacation home market: -50
• Move-up home market: -51
• First-time buyer / affordable home market: -59
Future surveys will focus on specialty rooms and systems (September 2008) and community design trends (December 2008)
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